PRESS ROOM
US economic data steady as yields continue their moderate ascent
Thursday 04th February '21
Fourth-quarter US economic data was not stellar, but steady. The US economy grew by an annualised 4% in Q4 2020. By contrast, the Euro area economy contracted by an annualised rate of 5.1% in the same period extending the recession for the fourth quarter and taking the 2020 contraction in the economy to 6.8% (source: Trading Economics). The US economic data is helping lift nominal Treasury yields primarily due to rising inflation expectations. Inflation is steadily on the rise in the US with December's annualised inflation rate coming at 1.4 – up from 1.2% in October and November.